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American Airlines' Value Pricing Business Background/Mission American Airlines was the U.S.'s largest carrier in 1992. It had a fleet of 622 jet aircraft, flying 2,450 flights daily to 182 locations. It also had innovative technology and programs. They were the first to introduce a computerized airline reservation system called Sabre, 'Super Saver' fares and frequent- flier programs. Despite these innovations, American Airlines and the airline industry as a whole was still not operating as profitably or providing customer satisfaction the way it should in 1992. There were two main reasons. First, the airline industry was suffering from the economic downturns in 1990 and 1991. In 1991 alone, the industry's cumulative losses were $1.87 billion, which exceeded the total amount of profits the industry had ever earned throughout its 60-year history. American Airlines itself reported losses of $77 million in 1990 and $165 million in 1991. In terms of customer's flying, the dollar...

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